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The oil price rally has swung into reverse amid signs that US shale is surging.

Market jitters have wiped 10pc from the global Brent crude benchmark, knocking it below $64 a barrel on Monday after a heady rise had pushed it a three-year high of $70 last month.

Brent could fall further as hedge funds begin to cut their bets that the rally will continue.

The Organisation of Petroleum Exporting Countries said its plan to boost prices by draining the market of a chronic supply glut would be supported by global demand growing faster than expected in 2018.

Its latest monthly report forecast that oil demand would grow by 1.59 million barrels a day this year, around 60,000 barrels higher than its previous...